I realize that this is more of a business question rather than an issue with Zen Cart but I have noticed that many of the forum members are more business oriented than software oriented and was hoping to get a dialog going regarding my question.

I am setting up my store policies and have run up against a wall when it comes to responsibility regarding problems with shipping (lost/damaged/late packages).

I understand that the carrier is responsible for the safe delivery of packages but who is responsible for pursuing claims with the carrier?

I have pretty much decided that it is worth the small charge to require my customers to buy “insurance” for their shipments. I use the term “insurance” loosely because many of the carriers do not offer insurance for their services but offer increased liability based on declared value of the item being shipped. Of course the cost of service is increased based on the declared value.

Assuming, all shipments are “insured” who is responsible for seeking compensation for lost or damaged shipments the merchant or the customer? If a customer receives a damaged product do the deal directly with the carrier or are they obligated to send the item back to the merchant who then seeks compensation from the carrier. The merchant is the entity that is ordering the shipment, but at the customer’s request. If the item is sent back to the merchant, who absorbs the cost of that shipment and the re-shipment of the new product back to the customer?

This is all very confusing to me and I want to be fair in establishing my shipping policy. I have reviewed a number of web based merchant’s shipping policies and it seems to be a 75/25 percent split where the customer bares the burden of correcting the problem with the carrier. I guess what I am asking is what is the basis for such decision making.

Any comments regarding this subject will be greatly appreciated.